Business Continuation Insurance

Many businesses are owned by more than one partner. All co-owners should have a succession plan in place to ensure the business will carry on in the event one of them dies or is disabled. With business continuation insurance, a partner can name another partner to be the beneficiary (called a cross-purchase policy). This way, the surviving partner will have the funds to buy out the deceased partner’s share.

If there is no business continuation insurance, they run the risk that the dead partner’s share would go to “Junior,” which may not be the most desirable situation.

Or with an entity-purchase policy, the business itself is named as the beneficiary, so the business can buy its own equity.